Intro

The Boston Housing Dataset is a derived from information collected by the U.S. Census Service concerning housing in the area of Boston MA.

Columns are as follow:

Project Objective:

We need to provide information to help with making an informed decision by answering the following questions:

  1. Is there a significant difference in the median value of houses bounded by the Charles river or not?
  2. Is there a difference in median values of houses of each proportion of owner-occupied units built before 1940?
  3. Can we conclude that there is no relationship between Nitric oxide concentrations and the proportion of non-retail business acres per town?
  4. What is the impact of an additional weighted distance to the five Boston employment centres on the median value of owner-occupied homes?

Visualization/Exploring

Let's handle outliers

1. Is there a significant difference in median value of houses bounded by the Charles river or not?

Using T-test

The Following assumption must be met:

Hypotheses

Conslusion: P-value < 0.05, then we can reject H_0, As there's significant difference between houses bounded by Charles river and houses which not

2. Is there a difference in Median values of houses (MEDV) for each proportion of owner occupied units built prior to 1940 (AGE)?

Using ANOVA

Hypotheses

Levene test for equality of variance

Conclusion:

2. Can we conclude that there is no relationship between Nitric oxide concentrations and proportion of non-retail business acres per town?

Using Pearson Correlation

Hypotheses

Since they are both continuous variables we can use a pearson correlation test and draw a scatter plot

Conclusion: Since the p-value (Sig. (2-tailed) < 0.05, we reject the Null hypothesis and conclude that there a relationship between NOX and INDUS

3. What is the impact of an additional weighted distance to the five Boston employment centres (DIS) on the median value of owner occupied homes (MEDV)?

Using Regression Analysis

Conclusion: The addational one unit of DIS cause an increase in MEDV by 1.3